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Market Asset Safety Risk Assessment

It is essential for depositary banks to demonstrate to their fund clients that they understand and monitor the processes and risks inherent in local capital market infrastructures. These conditions fundamentally shape the manner in which the underlying assets of funds are held, transferred and serviced.

The Market Asset Safety Assessment provides a comprehensive overview of the factors surrounding the protection of client assets in invested markets. The primary role of the report is to provide investors with an overall assessment of each market based on information required to assess the relative risks of loss of assets within the context of both the Alternative Investment Fund Managers Directive and the UCITS V.

This includes elements of Country Risk (e.g. natural, political or financial environment) that could directly or indirectly trigger loss of principal, the risk of the state defaulting on its debt, as well as local market processes and risks in the capital market infrastructure and sub-custody arrangements affecting the safekeeping, transfer and servicing of underlying assets.